North American Market for Third Party Payroll, Payment, and Healthcare Transaction Processing, 3rd Edition , The
 

North American Market for Third Party Payroll, Payment, and Healthcare Transaction Processing, 3rd Edition , The

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North American Market for Third Party Payroll, Payment, and Healthcare Transaction Processing, 3rd Edition , The North American Market for Third Party Payroll, Payment, and Healthcare Transaction Processing, 3rd Edition , The Document Transcript

  •    Get more info on this report!The North American Market for Third Party Payroll, Payment, and HealthcareTransaction Processing, 3rd EditionAugust 1, 2009The North American market for third party processing (TPP) services continues toperform well despite the global recession, with 2008 sales at $62 billion based onexceptionally strong growth during the past five years, and with 9%-10% averageannual gains forecast through 2013. Seeking to offset the impact of lower employmentfigures in the payroll space and reductions in consumer use of credit in the paymentspace, third party processors continue to bank on the ongoing move from paper toelectronic processing while waiting for government stimulus initiatives to kick in,especially in the healthcare arena. During the down economy major TPPs are alsopromoting new technologies to give their businesses a boost, working to increaserevenues from existing clients, and tapping into related growth areas such as humanresources outsourcing in the payroll space and mobile transactions in the paymentspace. At the same time, the market continues to see competitive upheaval, includingHeartland’s 2008 purchase of the TPP business of Alliance Data Systems, and FidelityNational’s 2009 acquisition of Metavante in the payment market; and Emdeon’s 2008emergence as an independent company and McKesson’s purchases of Per-Se (2007)and RelayHealth (2008) in the healthcare space.This fully updated report critically and quantitatively assesses the market for data andpayment-related transaction outsourcing. The report focuses particularly on three keysegments—electronic payment processing, payroll processing, and healthcaretransaction processing—with separate chapters tracing the service trends, markettrends and competitive strategies driving market growth and competition within each ofthese industry segments. The report also examines third party processing as it relatesto the Internet, as well as the development and expansion of Internet processingapplications. In addition, it identifies and assesses the economic drivers and regulatorychanges shaping each segment of the industry, as well as the trend whereby majorcompetitors are adopting technologies and leveraging their massive infrastructures toexpand beyond their traditional core businesses. Helping to illustrate these trends arecompetitive profiles of leading market participants including payroll processorsAutomatic Data Processing, Inc. (ADP), Paychex and Ceridian; payment processors
  • First Data Corp., Fiserv and TSYS; and healthcare transaction processors EmdeonCorp., SSI Group and Availity.Table of ContentsChapter 1: Executive Overview Scope & Methodology Market Definition Report Methodology Market Overview Market to Near $100 Billion in Next Five Years Figure 1-1: North American Market for Third Party Processing, 2004-2013 (in billions of dollars) Figure 1-2: Share of North American Market for Third Party Processing: By Segment, 2004, 2008 and 2013 (percent) Major Companies Lead, But Plenty of Smaller Players Little Competitive Overlap A Move to the Web A Period of Retrenchment Impact of Recession—Moving Forward Payroll Processing The Basics of Payroll Processing Payroll TPP Revenues Top $30 Billion in 2008 Market Penetration at Less Than Half Negative Employment Trends Payroll TPP Organizations Growing in Number Figure 1-3: Number of Payroll Processing Establishments, 2002-2008 The Market Leaders Scope of Payroll Processing Expanding Looking Ahead Payment Processing Overview of Services Double-Digit Growth Continues But Tempers Credit Card Cutbacks, Shift to Debit Figure 1-4: Annual Percentage Change in Revolving Consumer Credit, 2004- 2008 Bank Mergers Could Mean Smaller TPP Market Competitive Landscape Pool of Competitors Consolidates Further Looking Ahead Healthcare Transaction Processing Overview of Services Healthcare Transaction TPP Charting Steady Growth Increasing Costs a Major Concern in Healthcare Business
  • Healthcare System Turns to TPPs for Cost Efficiencies Upheaval Among Market Kingpins Moving to Electronic Fund Transfer Looking AheadChapter 2: Payroll Processing Introduction The Basics of Payroll Processing The Rationale for Payroll Outsourcing Drawbacks to Payroll Outsourcing Market Trends Market Sizing Methodology Payroll TPP Revenues Top $30 Billion in 2008 Figure 2-1: Revenues for Firms Providing Payroll Services, 2003-2007 (in millions of dollars) Table 2-1: North American Market for Payroll Third Party Processing, 2004-2008 (in billions of dollars) Potential Client Base Over 5 Million Strong Table 2-2: Number of Firms, Establishments, Employees and Annual Payroll of U.S. Employer Firms, 2006 Market Penetration Less Than 50% of Potential Market Negative Employment Trends Bad News for the Industry Table 2-3: Number of Employees on Non-Farm Payrolls, 2003-2008 Table 2-4: Annual Percentage Change in Non-Farm Employment by Month, 2003-2009 ADP National Employment Report Also Paints Negative Picture Avenues for Growth Small Business Health Another Key Barometer Projected Market Growth Table 2-5: Projected North American Market for Payroll Third Party Processing, 2008-2013 (in billions of dollars) Competitive Overview Core Payroll TPP Services Payroll TPP Organizations Growing in Number Figure 2-2: Number of Payroll Processing Establishments, 2002-2008 Plenty of Small Firms, But Largest Ones Dominate Table 2-6: Payroll Services Enterprises: By Employment Size and Annual Payroll, 2006 (number and dollars) The Market Leaders Table 2-7: Leading Payroll Third Party Processors, 2008 (in millions of dollars) Other TPPs in the Payroll Space The Role of Business Process Outsourcers (BPOs) and Human Resources Outsourcers (HROs) The Role of Application Service Outsourcers (ASOs) The Rise of Professional Employer Organizations (PEOs) Competitor Profile: Automatic Data Processing, Inc. (ADP) The World’s Largest Payroll/Tax Filing Processor
  • Figure 2-3: ADP Revenues, 2006-2008 (in millions of dollars) Growth and Outlook New Offerings Point to In-House Strategy Competitor Profile: Paychex, Inc. Building a Big Business on a Small Business Figure 2-4: Paychex Revenues, 2006-2008 (in millions of dollars) Payroll Is Key to Paychex’s Success A Unique Business Culture Small Businesses’ Problems Pose Problems for Paychex Competitor Profile: Ceridian Payroll Is Just the Beginning Figure 2-5: Ceridian Revenues, 2006-2008 (in millions of dollars) Payroll and Payment Kept Separate Wellness and the Web Marketing and Service Trends Scope of Payroll Processing Expanding Move to the Web SurePayroll Exclusively Online-Based Ultimate Software and UltiPro Banks Pushing into TPP Payroll Market Through Proprietary Online Platforms “Branded Payroll” Appeals to Accountants Accountants as TPPs CompuPay Hones in on CPAs Increasing Interest in Payroll Cards Table 2-8: Payroll Costs for Unbanked Consumers (in dollars) Payroll Cards Not a Sure Thing for TPPs An Attractive Market for PEOs Looking Ahead Deploying Technology and Allocating Resources Waiting Out the Downturn Branding Options at the Small Business Level More Companies Vying for Business Table 2-9: Number of U.S. Companies Providing Payroll Processing Services, 2002-2012 The Effect of Foreign Outsourcing Payroll Cards’ Expanding Niche Evolving Payroll MethodsChapter 3: Payment Processing Introduction Overview of Third Party Payment Processing The Appeal of Non-Cash Transactions Credit Card Processing Debit Transaction Processing Consumers Increasingly Prefer Electronic Payments Table 3-1: Distribution of Number of Non-cash Payments, 2003-2006 (percent) Table 3-2: Number of Non-cash Payments, 2003-2006 (in billions)
  • Size of the Electronic Transaction MarketFigure 3-1: Estimated Number of U.S. Credit/Debit Transactions Among TopFour Card Issuers, 2008 (in billions)Trends in Transaction FeesFee StructureVariance in FeesHow the Discount Rate Is DividedMarket TrendsDouble-Digit Growth Continues But Tempers Under Market PressuresTable 3-3: North American Market for Third Party Payment Processing, 2004-2008 (in billions of dollars)Healthy Growth in Credit and Debit TransactionsTable 3-4: Number of Electronic Payment Transactions by Type, 2003 vs. 2006(in billions)Gift Cards: A Growth AreaTable 3-5: Projected Growth in U.S. Gift Card Volume, 2007-2012 (in billions ofdollars)Credit Card Cutbacks, Shift to DebitFigure 3-2: Annual Percentage Change in Revolving Consumer Credit, 2004-2008Bank Mergers Could Mean Smaller TPP MarketPublic Backlash Against Credit Card IndustryHigh Interchange Rates May Hurt TPPsThe PIN- vs. Signature-Based Debit Tug-of-WarHealthy Growth Through 2013Table 3-6: Projected North American Market for Third Party Payment Processing,2008-2013 (in billions of dollars)Competitive OverviewCompetitive LandscapeTable 3-7: Revenues of Leading Third Party Payment Processing Companies,2005-2008 (in millions of dollars)Pool of Competitors Consolidates FurtherAcross the BorderOnline Payment ProvidersTable 3-8: Fee Structure for PayPal and Google Checkout, March 2009 (dollarsand percent)Companies Moving into Cell Phone Payment ProcessingFuture of Biometrics More Uncertain Than EverCompetitor Profile: First Data CorpA Market GoliathFigure 3-3: First Data Revenues, 2005-2008 (in millions of dollars)Company BackgroundKKR Takes Over First DataSplit from Chase Paymentech, Partnership with Bank of AmericaConsolidation, Cost-Cutting and AcquisitionsNew Payment Options
  • Competitor Profile: Fiserv, Inc The Largest Nonbank Check Processor Figure 3-4: Fiserv Revenues, 2005-2008 (in millions of dollars) Popular with Smaller Clients Acquisitions and Sales Adventures in Technology Competitor Profile: Total System Services, Inc. (TSYS) Newly Independent Figure 3-5: TSYS Revenues, 2005-2008 (in millions of dollars) Shifting Customers International Outreach TSYS Enters N>Gen Competitor Briefs Alliance Data Systems Corp Fidelity National Information Services, Inc. Figure 3-6: Fidelity National Information Services Revenues, 2005-2008 (in millions of dollars) Global Payments, Inc. Figure 3-7: Global Payments Revenues, 2005-2008 (in millions of dollars) Heartland Payment Systems, Inc. Figure 3-8: Heartland Payment Systems Revenues, 2005-2008 (in millions of dollars) Metavante Technologies Figure 3-9: Metavante Technologies Revenues, 2005-2008 (in millions of dollars) Looking Ahead TPPs Aiming for Reinvention Mobile Banking and Payments Contactless/RFID PaymentsChapter 4: Healthcare Transaction Processing Introduction The Basics of Healthcare Transaction Processing Core Healthcare Transaction TPP Services The Health Insurance Portability and Accountability Act Market Trends Healthcare Transaction TPP Charting Steady Growth Table 4-1: North American Market for Healthcare Transaction Third Party Processing, 2004-2008 (in billions of dollars) Increasing Costs a Major Concern in Healthcare Business Healthcare System Turns to TPPs for Cost Efficiencies U.S. Medicare Leads in Electronic Processing Table 4-2: Electronic Media Claims Rates for Medicare Carriers, 2000-2007 (number and percent) Private Sector Lags in Electronic Processing Figure 4-1: Electronic vs. Paper Based Transactions, 2009 (percent) Table 4-3: Paper vs. Electronic Billing and Payment Transactions, 2009 (percent) Obstacles to Electronic Transaction Adoption
  • Seeking Industry Standards Market Growth to Pick Up Steam Table 4-4: Projected North American Market for Healthcare Transaction Third Party Processing, 2008-2013 (in billions of dollars) Competitive Overview Market Involves Myriad Participants Market Leaders and Competitive Upheaval McKesson Acquires Per-Se and RelayHealth MedAvant Regroups as Capario Third Party Administrators (TPAs) Manage Healthcare Programs Competitor Profile: Emdeon Corp. A Newly Independent Company Looking to Go Public Emdeon’s Range of Services Eager for Growth A Strong Voice for the TPP Industry Changes in Industry May Challenge Emdeon’s Lead Competitor Profile: The SSI Group, Inc. A Stalwart Among Healthcare TPPs Services and Offerings A Partnership Strategy Competitor Profile: Availity A Web-Based Portal for Physicians Expansion Beyond Florida Growing Its Services Marketing and Service Trends Expanding Existing Networks Speeding Up Provider Cash Flow Shift from Clearinghouse Model to Web-Based Systems Moving to Electronic Fund Transfer Closing the Transaction Loop Will Help Lower Costs Creating Standards for Patient ID Cards Consumer-Driven Healthcare, Debit Use Will Spur More TPP Combining ID Cards and Debit Industry Must Comply with HIPAA Regulations Looking Ahead Federal Support Likely Means Bright Future for Healthcare IT Firms U.S. Healthcare Costs Expected to Rise Substantially Table 4-5: Healthcare Spending by U.S. Consumers and Businesses, 2003-2018 (dollars and percent) Greater Consumer Involvement in Own Healthcare Necessitates More Flexible TPP A Whole New Universe of Transactions Electronic Medical Records Promise Efficiency, Savings and Improved Care EMRs in Early Stages of Adoption Government Incentives Will Spur EMRsAppendix: Company Addresses
  • Available immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1939947   US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004